Semirara income drops 30% to P27.9 B

Lower prices of coal and power rates dragged the net income of Semirara Mining and Power Corp. (SMPC) by 30 percent to P27.9 billion in 2023 from P39.9 billion in 2022.

The company’s total revenues shrank by 16 percent to P91.13 billion from P76.96 billion due to lower selling prices.

The Consunji-led company said alltime high coal shipments and record electricity sales softened the impact of weaker selling prices for both coal and electricity.

Coal sales volume inched up by seven percent to 15.8 million metric tons from 14.8 MMT, driven by a 14-percent rise in exports to 8.1 MMT from 7.1 MMT, which compensated for the stagnant domestic sales at 7.7 MMT.

Likewise, the combined electricity sales from SMPC subsidiaries SEM-Calaca Power Corp. and Southwest Luzon Power Generation Corp. jumped by 26 percent to 4,515 gigawatt hours from 3,596 GWh.

“Last year, we expected energy prices to stabilize so we focused on boosting our mine and plant outputs. Our people played a crucial role in helping us manage the challenges of a fluctuating energy market,” SMPC president and COO Maria Cristina Gotianun said.

However, the company said the average selling price of Semirara coal fell by 26 percent to P3,796 from P5,136, as index prices retreated due to an oversupply from Indonesia, a warm winter and subdued global economic growth.

The company also reported a five percent decline in the average selling price of P5.40 from P5.67 on the combined impact of higher demand, entry of new capacity and interconnection of the Visayas and Mindanao grids.